Sales Promotion - Answers -direct inducement that offers extra value or incentive for the product to
sales force, distributors, and ultimate consumers
-Primary objective is to create an immediate sale
Advantages of sales promotion - Answers -Extra incentive to buy
-Acceleration tool
Disadvantages of sales promotion - Answers Overuse can lead to...
-Loss of brands perceived value
-Purchase of product being attributed to promotion incentive ad not favorable attitude toward brand
-Sales promotion trap/spiral
Consumer oriented sales promotion - Answers -Pull a product through a marketing channel by increasing
the consumers demand for a product
-Includes sampling, couponing, premiums, contests/sweepstakes, refunds/rebates, bonus packs , price
off deals, loyalty programs, event marketing, event sponsorship
Sampling - Answers -Giving some quantity of product for no charge to induce trial
-Door to door, on package, mail, event sampling, in store, social media
Couponing - Answers -Oldest and most widely used sales promotion tool
-A voucher entitling the holder to a discount for a particular product
-60% use these, 13% use regularly
Premiums - Answers -Offer of an item or merchandise or service either free or at a low price
-Small gifts of merchandise included in product or sent to consumers who mail in request or proof of
purchase
-Ex: happy meal toy
Contests - Answers -Consumers compete for prizes or money on basic of skills or ability
-Winners determined by judging entries or ascertaining which entry is closest to predetermined criteria
Sweepstakes - Answers -Promotion where winners are determined by chance
-Cannot require proof of purchase as condition for entry
, -Winners chosen by random selection or generation of number to march those held by entrants
-Games are popular form
refunds/rebates - Answers -Offers by manufacturer to return a portion of a purchase price
-Enhances repeat purchases
bonus packs - Answers -Offer consumer extra amount of product at regular price by providing larger
containers or extra units
-More of product for same price
price off deals - Answers -Reduces price of the brand
-Offered on the package through specially marked price packs
-Must adhere to regulations set by Federal Trade Commission
loyalty programs - Answers -Opportunity to accumulate points for continuing to purchase specific
brands
-Points redeemed for discounts, gifts, prizes, free items
-Used by airlines, hotels, packaged-goods, supermarkets, all types of retailers
-Aka "continuity or reach programs
Event marketing - Answers -Promotion that links company or brand to an event
-Promotion where a themed activity is developed to create experiences for consumers and promote
product or service
event sponsorship - Answers -Company develops sponsorship relations with an event and provides
financial support in return for brand/logo display, being supporter
Trade oriented sales promotion - Answers Push a product through a marketing channel by increasing a
retailer or other intermediaries demand
Contents/incentives - Answers -Stimulate greater selling effort and support from reseller management
or sales personnel
-Includes push money which can cause conflicts
Push money - Answers Cash payments made directly to sales staff to encourage promotion of product
Trade allowances - Answers -Deal offered to encourage resellers to stock, promote, or display
manufacturers products